CEO of FASB’s parent foundation says Senate bill would undermine standard setting

BY KEN TYSIAC

Financial Accounting Foundation President and CEO Terri Polley told a Senate committee on Tuesday that a provision in the so-called Schumer-Toomey bill, “raises serious issues about the continued independence of the standard-setting process.”

The proposal is designed to decrease the administrative burden on small and medium companies and spark job creation by making it easier for companies to go public. Polley, who runs the organization that oversees FASB, submitted a statement to the Senate Banking, Housing and Urban Affairs Committee. She said Section 3(c) of the proposed Reopening American Capital Markets to Emerging Growth Companies Act of 2011, S. 1933, would undermine FASB’s standard-setting process.

She said the provision would “effectively legislate accounting standards, jeopardizing the integrity” of standards relied on by investors and other stakeholders. Polley urged the removal of Section 3(c) from the proposal.

Ken Tysiac ( ktysiac@aicpa.org ) is a JofA senior editor.

More from the JofA:

 Find us on Facebook  |   Follow us on Twitter  |   View JofA videos

SPONSORED REPORT

Keeping client information safe in an age of scams and security threats

A look at the Dirty Dozen tax scams and ways to protect taxpayer information.

TECHNOLOGY Q&A

How to create maps in Excel 2016

Microsoft Excel 2016 has two new mapping capabilities. J. Carlton Collins, CPA, demonstrates how to make masterful 2D and 3D maps in Excel 2016.

QUIZ

News quiz: IRS enforcement, a hot job, and audit value

The IRS’s 2016 Data Book, a “hot job” of particular interest at this time of year, and insight into how executive and audit committees view the insights from financial statement audits received attention recently. See how much you know with this short quiz.